UNIT 3

Process of MIS Development : Defining the problem, Setting system objectives, Determining
information needs, sources, Development and selection of alternative design

SYSTEM DEVELOPMENT LIFE

An effective System Development Life Cycle (SDLC) should result in a high quality system that meets
customer expectations, reaches completion within time and cost evaluations, and works effectively and
efficiently in the current and planned Information Technology infrastructure.

System Development Life Cycle (SDLC) is a conceptual model which includes policies and procedures
for developing or altering systems throughout their life cycles.

SDLC is used by analysts to develop an information system. SDLC includes the following activities −

1. requirements
2. design
3. implementation
4. testing
5. deployment
6. operations
7. maintenance

Phases of SDLC :- Systems Development Life Cycle is a systematic approach which explicitly breaks
down the work into phases that are required to implement either new or modified Information System.
Feasibility Study or Planning

 Define the problem and scope of existing system.

 Overview the new system and determine its objectives.
 Confirm project feasibility and produce the project Schedule.
 During this phase, threats, constraints, integration and security of system are also considered.
 A feasibility report for the entire project is created at the end of this phase.

Analysis and Specification

 Gather, analyze, and validate the information.

 Define the requirements and prototypes for new system.
 Evaluate the alternatives and prioritize the requirements.
 Examine the information needs of end-user and enhances the system goal.
 A Software Requirement Specification (SRS) document, which specifies the software, hardware,
functional, and network requirements of the system is prepared at the end of this phase.

System Design

 Includes the design of application, network, databases, user interfaces, and system interfaces.
 Transform the SRS document into logical structure, which contains detailed and complete set of
specifications that can be implemented in a programming language.
 Create a contingency, training, maintenance, and operation plan.
  Review the proposed design. Ensure that the final design must meet the requirements stated in
SRS document.
 Finally, prepare a design document which will be used during next phases.

Implementation

 Implement the design into source code through coding.

 Combine all the modules together into training environment that detects errors and defects.
 A test report which contains errors is prepared through test plan that includes test related tasks
such as test case generation, testing criteria, and resource allocation for testing.
 Integrate the information system into its environment and install the new system.

Maintenance/Support

 Include all the activities such as phone support or physical on-site support for users that is
required once the system is installing.
 Implement the changes that software might undergo over a period of time, or implement any new
requirements after the software is deployed at the customer location.
 It also includes handling the residual errors and resolve any issues that may exist in the system
even after the testing phase.
 Maintenance and support may be needed for a longer time for large systems and for a short time
for smaller systems.

TYPES OF SYSTEM DEVELOPING LIFE CYCLES

1. Waterfall Model
2. V-Shaped Model
3. Evolutionary Prototyping Model
4. Spiral Method (SDM)
5. Iterative and Incremental Method
6. Agile development
7. Waterfall Model

WaterFall Model

The Waterfall Model was first Process Model to be introduced. It is very simple to understand and use.
In a Waterfall model, each phase must be completed before the next phase can begin and there is no
overlapping in the phases. Waterfall model is the earliest SDLC approach that was used for software
development.

In “The Waterfall” approach, the whole process of software development is divided into separate phases.
The outcome of one phase acts as the input for the next phase sequentially. This means that any phase in
the development process begins only if the previous phase is complete. The waterfall model is a
sequential design process in which progress is seen as flowing steadily downwards (like a waterfall)
through the phases of Conception, Initiation, Analysis, Design, Construction, Testing,
Production/Implementation and Maintenance.

As the Waterfall Model illustrates the software development process in a linear sequential flow; hence it
is also referred to as a Linear-Sequential Life Cycle Model.

Phases in Waterfall Model

1. Requirements: The first phase involves understanding what need to be design and what is its
function, purpose etc. Here, the specifications of the input and output or the final product are
studied and marked.
2. System Design: The requirement specifications from first phase are studied in this phase and
system design is prepared. System Design helps in specifying hardware and system requirements
and also helps in defining overall system architecture. The software code to be written in the next
stage is created now.
3. Implementation: With inputs from system design, the system is first developed in small programs
called units, which are integrated in the next phase. Each unit is developed and tested for its
functionality which is referred to as Unit Testing.
4. Integration and Testing: All the units developed in the implementation phase are integrated into a
system after testing of each unit. The software designed, needs to go through constant software
testing to find out if there are any flaw or errors. Testing is done so that the client does not face
any problem during the installation of the software.
5. Deployment of System: Once the functional and non-functional testing is done, the product is
deployed in the customer environment or released into the market.
6. Maintenance: This step occurs after installation, and involves making modifications to the
system or an individual component to alter attributes or improve performance.These
modifications arise either due to change requests initiated by the customer, or defects uncovered
during live use of the system. Client is provided with regular maintenance and support for the
developed software.

All these phases are cascaded to each other in which progress is seen as flowing steadily downwards
(like a waterfall) through the phases. The next phase is started only after the defined set of goals are
achieved for previous phase and it is signed off, so the name “Waterfall Model“.

Advantages of Waterfall Model

 The advantage of waterfall development is that it allows for departmentalization and control. A
schedule can be set with deadlines for each stage of development and a product can proceed
through the development process model phases one by one.
 The waterfall model progresses through easily understandable and explainable phases and thus it
is easy to use.
  It is easy to manage due to the rigidity of the model – each phase has specific deliverables and a
review process.
 In this model, phases are processed and completed one at a time and they do not overlap.
Waterfall model works well for smaller projects where requirements are very well understood.

Disadvantages of Waterfall Model

 It is difficult to estimate time and cost for each phase of the development process.
 Once an application is in the testing stage, it is very difficult to go back and change something
that was not well-thought out in the concept stage.
 Not a good model for complex and object-oriented projects.
 Not suitable for the projects where requirements are at a moderate to high risk of changing.
IDENTIFY AND DEFINE THE PROBLEM

The first step in MIS development process is to identify and define the problem.

A problem can be regarded as a difference between the actual situation and the desired situation. This
means that in order to identify a problem the team must know where it is meant to be and have a clear
understanding of where it currently is in relation to the perceived problem.

This stage is critical to the success of the rest of the project, because no one wants to waste subsequent
time addressing the wrong problem. The first phase requires that the analyst look honestly at what is
occurring in a business. Then, together with other organizational members, the analyst pinpoints
problems. Often others will bring up these problems, and they are the reason the analyst was initially
called in. Opportunities are situations that the analyst believes can be improved through the use of
computerized information systems. Seizing opportunities may allow the business to gain a competitive
edge or set an industry standard.

The analyst must first discover what the business is trying to do. Then the analyst will be able to see
whether some aspect of information systems applications can help the business reach its objectives by
addressing specific problems or opportunities.

The people involved in the first phase are:

the users, analysts, and systems managers coordinating the project. Activities in this phase consist of
interviewing user management, summarizing the knowledge obtained, estimating the scope of the
project, and documenting the results. The output of this phase is a feasibility report containing a problem
definition and summarizing the objectives. Management must then make a decision on whether to
proceed with the proposed project. If the user group does not have sufficient funds in its budget or
wishes to tackle unrelated problems, or if the problems do not require a computer system, a different
solution may be recommended, and the systems project does not proceed any further.

Milestones are places along the project which can assist us in measuring progress much like mile
markers on the highways. Deliverables are tangible products which provide documentation of work
completed.

Milestones:

1. Initial Interviews & Study Complete

2. Presentation of Vision/Scope Document
3. Sign-off By Management

Deliverables:

1. Systems Proposal or Vision/Scope Document

2. High Level Project Schedule
There is no doubt that problems exists in any dynamic business. The most important is that what are
usually lacking are clear definitions of the problems and the priority system on the basis of problem is
the main solution. Therefore, management must take the first step in MIS design by formulating
problems to be solved. The problem can be solved by the iterative process.

1. The goal for the business leads to the objectives of the general business.
2. From the objectives, plans are derived.
3. Each business objectives and business plans are associated with information needs.
4. These Information needs are the problems to be solved by the MIS function.
5. The statements of needs are enough for designing process.

 Stating the information need.

 Asking questions about that need.
 Suggesting and interpretation of that need.
 Detailing the original statement.
 Reviewing the more detailed statement of need with management.

These steps are repeated until the information needs and the problem to be solved are really
understood. The process of problem refinement flows naturally into the system objectives

SETTING SYSTEM OBJECTIVES

Most of the time it is quite difficult to state objectives for systems that covers all the functional areas.
The manager must define the system objectives in terms of the importance of information demands
and not in terms of the satisfaction of demands that are not related to an objective. System analyst
tends to stress processing efficiency and staff and functional supervisors commonly believe that their
objective is “to complete the required report in time for management use”. This view disregards the
real objectives of the system design, management’s effectiveness.

The value of system lies in the benefits of the users. When we ask for the objectives, a college
principal may reply,” provide quality education” and a government bureaucrat may say” provide more
jobs for the unemployed”. Despite its difficulty being specific is necessary. System objectives should
be expressed in terms of what managers can do after their information requirements have been met.
In summary, the first steps in systems design attempts to answer the question” what is the purpose of
the system?” why it is needed? What is it expected to do? Who are the users what are their objectives?
DETERMINING INFORMATION NEEDS AND SOURCES

For a good system design, a clear statement of information needs is very important and necessary.
Many organizations spend huge amounts on hardware and software to maintain existing systems or
build sophisticated data banks, without first determining the real information needs of management:
the information that can increase the ability of managers in critical areas such as problems,
alternatives, opportunities and plans.

The optimum results cannot be achieved unless managers can provide the specifications for what they
want out of an information system. The manager needs information for variety of reasons concerned
with the management process. The type of needs at various times and various purposes depends
largely upon two factors.

a) The personal managerial attributes of the individual manager .

b) The organizational environment in which decisions are made.

The information sources are important for determining information needs. The system may require
external information or the internal.

TYPES OF INFORMATION
 Instructions
 Command
 Advisory
 Answers
 Historical
 Predictive.

Each of these types of information can, in theory, be provided on most types of displays. However,
some lend themselves better to one form of display rather than another. The characteristics of each of
these types can now be briefly discussed. The particular forms of technology that can be used to
implement them will be discussed in more detail in a later section.

1.Instructions refer to information that guides behavior in a particular way. In other words, it supports
performance to carry out a task by prompting on what to do and when to do it. A simple sign telling
people to enter or not enter a door would be one example. Other simple cases include the dialogue
messages that are provided on automated cash machines (ACM). More complex instructions will
appear in printed form on the packaging or the instructional manuals for pieces of equipment.

2.Command messages give a very straightforward statement on what is or what is not permitted. 'Do
not enter', 'do not smoke', 'do not eat or drink', are examples of command messages. Sometimes they
are similar to instructions, but are much more focused on simple statements that refer to high priority
items.

3.Advisory: messages are somewhat watered down versions of command messages. In some cases,
these will be recommendations to avoid a situation, at other times they would be information allowing
for the preparation or planning of particular activities. For example, we might be advised that our train
is late by a spoken message and we might, possibly, be given an accurate time estimate for when the
train will be available.

4.Answers: information may be provided in response to a particular enquiry that has been made. This
is typical of an interactive information-handling situation, where we have a particular question in mind
or degree of uncertainty and we seek information from a source with regard to removing that
uncertainty. It turns out that most of the information that is sought from displays is of the answer kind.
If we want to know what the time of day is, we look at our watches and clocks to find the answer. If
we want to know what speed we are doing in our cars, or what level of fuel we have, we look at the
gauges.

5.Historical displays are used to look back at the state of a variable over a period of minutes, hours,
days or even years. A graphical representation of road accidents over the last century would be a
historical display of information. If we want to know what the temperature fluctuation has been in an
office on a daily basis, then specialist devices can be brought in and placed in the office that will give
a pen recording over a fixed period of time. It is much easier to see if there is a trend in information if
it is displayed in this way; the alternative is to hold in memory a general impression of what the
temperature readings have been at a number of points during the day or record them manually on a
chart. Gauging the temperature in an office concerns a relatively low risk situation. However, if the
concern is with the temperature in a critical vessel in a chemical process, then the temperature trends
exhibited over the time are quite important. If the current value is near a safety value, it may well be
that it has been near that value for several weeks and is not a critical event. On the other hand, it may
have reached that value in the last few hours; looking back at the trend in the information will indicate
the rate of change of that variable and whether it constitutes a particular risk to the system.

6.Predictive: displays are much more specialized, but increasingly found in complex processes. In the
same way that historical data support performance in making a judgment based on the current value,
predictive information enables examination of the current value and indicates any likely change in the
future. Predictor displays enable better control over vehicles, typically at sea or airborne, and enable
smoother transitions from one state to another. They are used in slow response systems where it is
difficult to see the immediate effect of an action that has been carried out. Predictive displays will
enable a variable to be plotted into the future. The same graphs that are used as historical displays can
also be used as predictive displays. If a steady decline in road accidents over time is seen, then the best
prediction of the future would be a continued decline. However, it may be that this does not turn out to
 be the case because of some other factor that can enter into the situation. A predictive value is based
on the best evidence available. But in the case of control of dynamic situations, such displays have
much to offer in extending the human skill.

Types of Sources

Management information comes from multiple sources. The challenge for a business is to capture and
use relevant and reliable information and the benefit of such information must exceed the cost of
obtaining this information.

Modern IT systems have reduced these costs significantly but skilled highly-paid staff is required to
run these information systems.

Internal Sources

Accounting records are a prime source of internal information. They detail the transactions of the
business in the past, which may be used as the basis for planning for the future (e.g. preparing a
financial budget or forecast).

1. Daily books such as sales day book, purchase day book and cashbook can provide useful
information to management.

2. The accounting records are primarily used to record what happens to the financial resources of
a business. For example, how cash is obtained and spent; what assets are acquired; what profits
or losses are made on the activities of the business. However, accounting records can provide
much more than financial information. For e.g., details of the products manufactured and
delivered from a factory can provide useful information about whether quality standards are
being met.

3. Data analyzed from customer sales invoices provides a profile of what and to whom products
are being sold.
4. Internal information connected to accounting systems

5. Most internal information is connected to accounting systems - but is not directly part of them.
For e.g.: From the payroll system, records of the people employed by the business (personal
details; what they get paid; skills and experience; training records)

Data on the costs associated with business processes (e.g. costings for contracts entered into by the
business)

Data from the production department (e.g. number of machines; capacity; repair record)
Data from activities in direct contact with the customer (e.g. analysis of calls received and missed in a
call centre)

Internal information is also provided informally. For example, regular meetings of staff and
management will result in the communication of relevant information. For e.g. minutes of board
meetings may include future strategies on new products and markets.

External Sources

1. Government publications such as monetary and fiscal policies, Press releases such as
newspapers, technical magazines, journals which provide information about share price,
technological developments and information on competitors and their products.
2. Banks can provide information on potential customers and on nation markets.
3. Financial statements of other businesses provide useful information to the company.
4. Correspondence received from suppliers, customers and tax authorities etc.
5. Internet websites, social networking sites, forums etc.
6. Databases held by public bodies and businesses e.g. providing online information on money
market interest rates and foreign exchange rates.
7. Data warehouses which contain data from both internal and external sources. They store
current as well as historical data and are used for creating trending reports for senior
management reporting such as annual and quarterly comparisons.

ALTERNATIVE CONCEPTUAL DESIGNS AND SELECTING ONE

The development of a concept of a system is a creative process that involves synthesizing knowledge
into some particular pattern. The concept of an MIS would consist of the major decision points,
patterns of information flow, channels of information and roles of managers and competitors. The
concept is the sketch of the structures or skeleton of the Information System, which guides and
restricts the form of the detailed design. If conceptual design is the skeleton, then detailed design is the
flesh.

E.g. two teams of students are trying to do project on the tourist guide and contact information system.
One concept produced is a sketch showing a detail about the particular places describing its culture,
heritages along with the colleges. Hotels and trade. Where as another team produces a sketch of
description of colleges along with the description of faculty and the fee structures on various needs.

It is obvious that each alternative concept of a system has advantages and disadvantages. Sometimes
one concept will dominate all others by major criteria.
In MIS, the information is recognized as a major resource like capital and time. If this resource has to
be managed well, it calls upon the management to plan for it and control it, so that the information
becomes a vital resource for the system.

The management information system needs good planning.

This system should deal with the management information not with data processing alone.

It should provide support for the management planning, decision-making and action.

It should provide support to the changing needs of business management.

Major challenges in MIS implementation are:

Quantity, content and context of information - how much information and exactly what should it
describe.

Nature of analysis and presentation - comprehensibility of information.

Availability of information - frequency, contemporariness, on-demand or routine, periodic or

occasional, one-time info or repetitive in nature and so on

Accuracy of information.

Reliability of information.

Security and Authentication of the system.

Planning for MIS

MIS design and development process has to address the following issues successfully:

There should be effective communication between the developers and users of the system.

There should be synchronization in understanding of management, processes and IT among the users
as well as the developers.

Understanding of the information needs of managers from different functional areas and combining
these needs into a single integrated system.

Creating a unified MIS covering the entire organization will lead to a more economical, faster and more
integrated system, however it will increase in design complexity manifold.
The MIS has to be interacting with the complex environment comprising all other sub-systems in the
overall information system of the organization. So, it is extremely necessary to understand and define
the requirements of MIS in the context of the organization.

It should keep pace with changes in environment, changing demands of the customers and growing
competition.

It should utilize fast developing in IT capabilities in the best possible ways.

Cost and time of installing such advanced IT-based systems is high, so there should not be a need for
frequent and major modifications.

It should take care of not only the users i.e., the managers but also other stakeholders like employees,
customers and suppliers.

Once the organizational planning stage is over, the designer of the system should take the following
strategic decisions for the achievement of MIS goals and objectives:

Development Strategy: Example - an online, real-time batch.

System Development Strategy: Designer selects an approach to system development like operational
verses functional, accounting verses analysis.

Resources for the Development: Designer has to select resources. Resources can be in-house verses
external, customized or use of package.

Manpower Composition: The staffs should have analysts, and programmers.

Information system planning essentially involves:

Identification of the stage of information system in the organization.

Identification of the application of organizational IS.

Evolution of each of this application based on the established evolution criteria.

Establishing a priority ranking for these applications.

Determining the optimum architecture of IS for serving the top priority applications.

Srrp Planing

Information System Requirements

The following diagram illustrates a brief sketch of the process of information requirement analysis:
Information System Requirements

The following three methodologies can be adopted to determine the requirements in developing a
management information system for any organization:

Business Systems Planning (BSP) - this methodology is developed by IBM.

It identifies the IS priorities of the organization and focuses on the way data is maintained in the
system.

It uses data architecture supporting multiple applications.

It defines data classes using different matrices to establish relationships among the organization, its
processes and data requirements.

Critical Success Factor (CSF) - this methodology is developed by John Rockart of MIT.

It identifies the key business goals and strategies of each manager as well as that of the business.

Next, it looks for the critical success factors underlying these goals.

Measure of CSF effectiveness becomes an input for defining the information system requirements.

End/Means (E/M) analysis - this methodology is developed by Wetherbe and Davis at the University of
Minnesota.
It determines the effectiveness criteria for outputs and efficiency criteria for the processes generating
the outputs.

At first it identifies the outputs or services provided by the business processes.

Then it describes the factors that make these outputs effective for the user.

Finally it selects the information needed to evaluate the effectiveness of outputs

Information System Analysis and Design

System analysis and design follows the typical System/Software Design Life Cycle (SDLC) as discussed in
the previous chapter. It generally passes through the following phases:

Problem Definition

Feasibility Study

Systems Analysis

System Design

Detailed System Design

Implementation

Maintenance

In the analysis phase, the following techniques are commonly used:

Data flow diagrams (DFD)

Logic Modeling

Data Modeling
Rapid Application Development (RAD)

Object Oriented Analysis (OOA)

Technology for Information Systems

The technology requirement for an information system can be categorized as:

Devices

Data center systems - It is the environment that provides processing, storage, networking,
management and the distribution of data within an enterprise.

Enterprise software - These are software system like ERP, SCM, Human Resource Management, etc.
that fulfill the needs and objectives of the organizations.

IT services - It refers to the implementation and man

agement of quality IT services by IT service providers through people, process and information
technology. It often includes various process improvement frameworks and methodologies like six
sigma, TQM, and so on.

Telecom services

System Test Planning and Execution

The system should be fully tested for errors before being fully operational.

The test plan should include for each test:

Purpose
Definition

test inputs

detailed specification of test procedure

details of expected outputs

Each sub-system and all their components should be tested using various test procedures and data to
ensure that each component is working as it is intended.

The testing must include the users of the system to identify errors as well as get the feedback.

System Operation

Before the system is in operation, the following issues should be taken care of:

Data security, backup and recovery;

Systems control;

Testing of the system to ensure that it works bug-free in all expected business situations;

The hardware and software used should be able to deliver the expected processing;

The system capacity and expected response time should be maintained;

The system should be well documented including;

A user guide for inexperienced users,

A user reference or operations manual for advanced users,

A system reference manual describing system structures and architecture.

Once the system is fully operational, it should be maintained throughout its working life to resolve any
glitches or difficulties faced in operation and minor modifications might be made to overcome such
situations.

Factors for Success and Failure

MIS development projects are high-risk, high-return projects. Following could be stated as critical
factors for success and failure in MIS development:

It should cater to a specific, well-perceived business.

The top management should be completely convinced, able and willing to such a system. Ideally there
should be a patron or a sponsor for the system in the top management.

All users including managers and other employees should be made an integral part of the
development, implementation, and use of the system.

There should be an operational prototype of the system released as soon as possible, to create interest
among the users.

There should be good support staff with necessary technical, business, and interpersonal skills.

The system should be simple, easy to understand without adding much complexity. It is a best practice,
not to add up an entity unless there is both a use and user for it.

It should be easy to use and navigate with high response time.

The implementation process should follow a definite goal and time.

All the users including the top management should be given proper training, so that they have a good
knowledge of the content and function of the system, and can use it fully for various managerial
activities such as reporting, budgeting, controlling, planning, monitoring, etc.

It must produce useful outputs to be used by all managers.

The system should be well integrated into the management processes of planning, decision-making,
and monitoring